Amazon is facing scrutiny after ending its contract with Washington-based delivery company 2EZY, which laid off 120 employees and ceased operations Monday, Inc. reports.
In a WARN filing, 2EZY said Amazon, its only client, ended the company’s contract with just one business day’s notice, making the layoffs and closure unforeseeable. Amazon disputes that account, stating. that 2EZY was notified Sept. 1, allowing for a 30-day notice period.
Amazon also said it attempted to work with 2EZY’s owner to ensure an orderly wind-down and is helping connect affected employees with other Delivery Service Partners in the area.
The dispute highlights the potential impact of contract terminations on companies that rely heavily on a single client. Employment attorney Thomas Ricotta says the federal WARN Act generally requires employers with 100 or more full-time workers to provide 60 days’ advance notice of qualifying mass layoffs, but the law does not directly extend those protections to independent contractors. Because 2EZY employed the 120 workers, its WARN Act obligations must be considered separately from Amazon’s contractual obligations to the company.
The situation follows a similar episode in New York City, where nearly 500 workers reportedly were laid off after Amazon ended contracts with third-party delivery companies. Their union subsequently filed a complaint with the Department of Labor, alleging Amazon did not provide legally required notice before cutting ties with the companies that employed the workers.
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